Innovative Technologies: Solving Last-Mile Delivery Challenges for MSMEs

Learn how MSMEs can improve last-mile delivery with real-time tracking, automation, NDR systems, and AI, boosting efficiency and customer satisfaction.

CIOL Bureau
New Update

Ever been frustrated waiting for a delivery that seems to take forever, wondering when it will finally arrive? In today's fast-paced world, timely delivery is no longer a luxury but an expectation. This demand for speed and reliability is especially challenging for Micro, Small, and Medium Enterprises (MSMEs), which often face significant hurdles in the last mile of their delivery process. According to the latest data available, the business-to-consumer (B2C) e-commerce shipments per day in India have surged from 1.5 million in 2018 to an estimated 12 million in 2024. This dramatic increase highlights the growing importance of efficient last-mile delivery solutions. As the final leg of the journey, last-mile delivery is crucial for customer satisfaction and business success, but it also presents unique challenges that require innovative solutions.


Quick turnaround: Real-time tracking and visibility

One pressing issue for MSMEs in last-mile delivery is the lack of real-time tracking and visibility. Customers expect to know the status of their deliveries at all times. Implementing Internet of Things (IoT) devices and GPS tracking systems enables MSMEs to provide real-time updates to their customers. This not only improves customer satisfaction but also enhances the overall efficiency of the delivery process by allowing businesses to respond quickly to any disruptions or delays. By leveraging advanced tracking technologies, MSMEs can keep their customers informed and ensure a smoother delivery experience.

Automating and streamlining the tougher tasks for timeliness


Efficiency in order processing is critical for timely deliveries. Innovative third-party logistics companies have developed features that streamline order confirmation processes, reducing errors and ensuring that orders are accurately processed and dispatched. Automation tools can help MSMEs manage their logistics operations more effectively, from order receipt to delivery. This not only speeds up the process but also minimizes the risk of human error, ensuring that packages are dispatched correctly and reach their destinations on time.

Eliminating the Non-Delivery snags

Undelivered shipments are a common issue in last-mile delivery, leading to customer dissatisfaction and increased costs for businesses. Pioneering logistics companies have introduced Non-Delivery Report (NDR) systems to tackle this problem. These systems provide a structured process for resolving delivery failures, ensuring that packages reach their intended recipients promptly. By using NDR systems, MSMEs can significantly reduce the incidence of failed deliveries, improving customer satisfaction and reducing operational costs associated with redelivery attempts.


All-inclusive: AI and Machine Learning provide the ultimate tool

The integration of Artificial Intelligence (AI) and Machine Learning (ML) can help MSMEs predict demand patterns and optimize inventory management. These technologies analyze historical data and current trends to forecast future demand, ensuring that products are available when and where they are needed. AI and ML can also personalize the delivery experience, tailoring services to meet individual customer preferences and enhancing overall satisfaction. By adopting AI-driven solutions, MSMEs can optimize their logistics operations, reduce waste, and improve the accuracy of their delivery services.

Last word before the last mile: Embracing Innovation for Last-Mile Success


Overcoming the challenges of last-mile delivery snags for MSMEs requires the adoption of innovative technologies.  By leveraging real-time tracking, automation, NDR systems, and AI, MSMEs can enhance their delivery operations, reduce costs, and improve customer satisfaction. These technological advancements are not just about keeping pace with customer expectations but about staying ahead in a competitive market. Embedding these solutions positions MSMEs for success, enabling them to deliver faster, more reliable, and cost-effective services, ultimately driving growth and customer loyalty.

 Authored By: Zaiba Sarang, Co-founder of iThink Logistics